On 7 March 2019, the Central Bank published a notice of intention providing clarity in relation to investments by UCITS and Retail Investor AIFs in UK funds and UK counterparties which will be relevant to market participants impacted by Brexit. 

In the event of a hard Brexit, the Central Bank will consider:

  1. Whether UK UCITS, which at that point will become UK AIFs, should be identified in Central Bank guidance as a category of investment fund in which UCITS and Retail Investor AIFs may invest. For the period while this is under consideration, the Central Bank does not propose adopting a default position which would treat the UK AIFs as ineligible. For UCITS, any investment in UK AIFs must fall within with the aggregate limit of 30% for investments in all AIFs; and
  2. Whether UK investment firms, currently authorised under MiFID, should be a category of eligible financial derivative counterparty for UCITS and Retail Investors AIFs. For the period while this is under consideration, the Central Bank does not propose adopting a default position which would treat UK investment firms as ineligible.

The notice of intention can be found here.